Coping with uncleared margin rules – the tricks, traps and tools
A unique insight on the evolving UMR strategies of 110 banks and buy-side firm
Global uncleared margin rules require over-the-counter derivative counterparties to post initial margin against their bilateral trades, subject to certain notional thresholds. With many larger dealers already caught in the net, phases five and six of the rules are expected to pull in increasing numbers of buy-side firms, presenting significant challenges for market participants’ risk and collateral management operations and technological capabilities.
As awareness grows of the complexities ahead, Risk.net surveyed over 110 in-scope banks and buy-side participants to assess their state of readiness. This white paper:
- Discusses the potential impact of UMR on portfolios, profitability, strategy and resource
- Reveals insights from a Risk.net survey assessing firms’ plans and preparations
- Highlights key decision stages in best-practice UMR planning
- Compares the evolving strategies of in-scope banks and buy-side firms
Our UMR Solutions
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
